Present invention relates to a peak-to-average reduction and pre-distortion circuit to boost the output power of a radio terminal power amplifier. The peak-to-average reduction and pre-distortion circuit is performed on the transmit baseband signal. The amplitude pre-distortion uses a look up table that is being updated on regular bases. In any wireless communication system one of the critical components is the power amplifier. This component has a major contribution in cost, power consumption, and size of the system. The main reason is the requirement of wireless radio communication system for linear power amplifiers. The higher the linearity, the higher the power consumption, cost and size. In order to minimize the cost, size and power consumption there is a need for techniques that overcome this problem. This invention conquers these challenges by using a simple and accurate peak-to-average reduction and pre-distortion circuit before the signal being applied to the power amplifier.